CHINA and the United States are working on a pact to promote use of ethanol and other biofuels to reduce greenhouse gas emissions.

An agreement could be announced as early as next month, an American official said in Beijing yesterday.

The agreement would call for cooperation in research, producing crops for fuel and other areas, said Alexander Karsner, an assistant US energy secretary.

He was in Beijing for talks with Chinese officials on promoting use of renewable energy sources.

A biofuels agreement could be announced at the December 12 meeting of the Strategic Economic Dialogue, a high-level Chinese-US forum on trade and other issues, Karsner said. He declined to give details, saying they still are being discussed.

It would be Washington's first such pact in Asia, following similar agreements with Brazil and Sweden, Karsner told reporters.

"China is a natural, as would be India, to enhance cooperation on biofuels," he said.

China has promoted wind power and other alternative energy in hopes of reducing environmental damage from heavy use of coal and oil to fuel its booming economy.